Circuit City's defining moves.
The defining strategic moves at Circuit City — each one explained and grounded in the record.
The Fall · Decision Forks
Circuit City Didn't Die From Firing Its Best Staff. It Had Already Done That Once.
In 2007 Circuit City fired ~3,400 of its highest-paid associates to save on wages. Everyone calls it the fatal mistake. It wasn't even the first time - it had purged 3,900 commissioned sellers in a single day in 2003. The autopsy points elsewhere.
8 min
The Culture Doctrine · Culture Doctrine
Circuit City Fired Its Best People to Save Money. The Discipline Was Real. So Was the Suicide.
In March 2007, Circuit City fired 3,400 workers for the crime of being paid too well, then invited them to reapply at lower wages. Twenty months later it was bankrupt. A Good-to-Great company ran the playbook to the letter - and the letter was the problem.
8 min
The Culture Doctrine · Culture & Doctrine
Circuit City Didn't Fire Its Best Salespeople. It Fired Whoever Cost Too Much.
In March 2007, Circuit City cut ~3,400 store workers for being paid above a salary range. The famous lesson - 'they fired their best people' - is an analyst's guess. The truth is colder, and the real killer arrived 20 months later.
7 min
The Counterfactual · Decision Forks
Circuit City Didn't Die in 2008. It Died Three Times, Years Earlier.
Everyone blames the financial crisis for Circuit City's collapse. But it fired 3,900 commissioned sellers in 2003, then 3,400 'overpaid' workers in 2007 — and watched Best Buy grow to $40 billion. The crash was the execution, not the executioner.
8 min